Prescribing the Interim Procedures in the Processing and Approval of Applications For the Development Or Utilization of Forestlands And/Or Forest Resources

EXECUTIVE ORDER NO. 278 July 25, 1987

PRESCRIBING THE INTERIM PROCEDURES IN THE PROCESSING AND APPROVAL OF APPLICATIONS FOR THE DEVELOPMENT OR UTILIZATION OF FORESTLANDS AND/OR FOREST RESOURCES

WHEREAS, the 1987 Constitution places the development or utilization of our forestlands and/or forest resources under the full control and supervision of the State and allows the State to enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations, or associations, at least sixty per centum (60%) of whose capital is owned by such citizens;

WHEREAS, there are presently issued forest permits, licenses, leases or grants, in relation to which the grantees have already made huge investments in terms of money and equipments;

WHEREAS, there are presently pending applications for such forest permits, licenses or leases, which ought to be given immediate consideration; and

WHEREAS, the forest-based industry is a major contributor to the national economy , and therefore, the development or utilization of the country's forestlands and/or forest resources is necessary to accelerate economic recovery;

NOW, THEREFORE,...

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Summary of Executive Order No. 278

Applications for Forestland Development or Utilization
- Applications for development or utilization of forestlands and/or forest resources may be accepted and processed, except for timber licenses for commercial purposes. (Sec. 1)
- Processing, evaluation, and approval shall follow Presidential Decree No. 705, existing forestry laws, orders, issuances, and implementing rules and regulations. (Sec. 2)
- Privileges granted and terms and conditions are subject to modifications by Congress pursuant to the 1987 Constitution. (Sec. 2)

Existing Forest Permits, Licenses, and Leases
- Existing and currently recognized forest permits, licenses, and leases issued by the Department of Environment and Natural Resources (DENR) shall continue and remain in full force and effect, subject to the original terms and conditions, unless Congress provides otherwise. (Sec. 3)

Joint Venture, Co-production, or Production-Sharing Agreements
- The DENR Secretary is authorized to negotiate and enter into joint venture, co-production, or production-sharing agreements for forestland and/or forest resource development or utilization with Filipino citizens, corporations, or associations with at least 60% Filipino capital ownership. (Sec. 4)
- Such agreements shall be for a period not exceeding 25 years, renewable for not more than 25 years. (Sec. 4)

Minimum Terms and Conditions for Agreements
- The agreement-holder shall furnish necessary management, technology, and financial services as determined by the DENR Secretary. (Sec. 5a)
- A stipulated share of revenues and the manner of payment thereof. (Sec. 5b)
- Provisions on consultation and arbitration regarding agreement interpretation. (Sec. 5c)
- Provisions for anti-pollution and environmental protection measures. (Sec. 5d)
- Provisions for forest restoration and protection. (Sec. 5e)
- Provisions for an effective monitoring scheme by DENR, including periodic inspection of records and books of account. (Sec. 5f)
- A commitment to community development. (Sec. 5g)
- Submission of a management and development plan approved by the DENR Secretary. (Sec. 5h)

Implementation and Enforcement
- The DENR Secretary shall promulgate rules and regulations necessary for effective implementation. (Sec. 6)
- If any provision is held unconstitutional, the other provisions shall not be affected. (Sec. 7)
- All inconsistent laws, decrees, orders, and issuances are repealed or modified accordingly. (Sec. 8)
- The Executive Order takes effect immediately. (Sec. 9)